China's insurance industry started to recover in 1980, after 20
years' standstill. In 1981, the People's Insurance Company of China
was transformed from a government department into a specialized
company, with branches or sub-branches in every part of China. 1988
witnessed the founding of the Ping An Insurance (Group) Company of
China and the Pacific Insurance Company, both mainly active in the
coastal areas. In 1996, the People's Insurance Company of China
made a big step forward in transforming its administration and
operational mode, in setting up a modern enterprise system, and
integrating with the international market. The Insurance Law of
1985 and the founding of the CIRC in 1988 provided the legal basis
and specific rules for the operation of the insurance market. In
1980, China only had one insurance company; by 2004 there were 62,
with a total revenue of premiums of 431.8 billion yuan, of which
100.4 billion were paid as compensation and payment.
